Jargon Is Hurting, Not Helping

Jargon Is Hurting, Not Helping

Private equity (PE) firms have become a major feature in AE industry consolidation, playing a large role in reshaping the competitive landscape of the markets in which they invest. We reported at our Western States M&A and Business Symposium a couple months ago that PE firms represent roughly 24% of the Engineering News-Record (ENR) Top 100 firms and are projected to account for nearly 41% of all industry transactions that take place in 2024. Many (most?) ENR 500 CEOs receive inquiries from PE firms asking about acquiring or recapitalizing their design firms on at least a weekly basis.

As these PE firms continue to engage with the unprecedented level of M&A opportunities in the AE industry, I find myself listening to their representatives relying upon the same familiar buzzwords and jargon to convey excitement and strategic fit with potential sellers. The overuse of industry clichés, however, risks undermining the authenticity of a firm’s pitch. This article explores how this language can resonate—or fail to resonate—with potential sellers and why a more tailored thoughtful approach is essential to success.

With PE firms, buzzwords and jargon are often used to convey enthusiasm, confidence, and strategic alignment when discussing investment opportunities. Phrases such as “right down the fairway,” “low-hanging fruit,” and “sweet spot” are meant to project assurance that the deal under consideration is a perfect fit. However, these terms can become so overused that they start to lose their meaning and impact. When every opportunity is framed as a “home run” or “slam dunk,” it can come across as generic and insincere, diluting the credibility of the firm’s pitch. Over time, this over-reliance on industry clichés may create skepticism, especially with seasoned sellers who have heard these terms from multiple potential buyers.

From the perspective of a potential seller, these terms can feel like hollow placeholders rather than genuine insights into the buyer’s intentions. Sellers want to feel that their business is being evaluated based on its unique characteristics and value, not just through the lens of a formulaic approach. If a PE firm uses the same language for every deal, the seller may doubt the level of thought and preparation put into the offer. 

To resonate with sellers, PE firms should aim to move beyond these overused terms and instead offer specific, tailored insights that reflect a deeper understanding of the business. For example, instead of vaguely referring to “synergies,” a PE firm could detail how its expertise in a particular industry or region can drive growth. Similarly, discussing “value creation” in concrete terms, such as how operational improvements or strategic initiatives will enhance the company’s bottom line, is likely to resonate more than broad generalities.

AE firm CEOs know that in a competitive market, standing out requires more than just the right jargon. And the PE firms that seek to recapitalize this industry should learn that lesson, too. It requires authentic engagement and thoughtful communication. By moving away from these buzzwords and focusing on the specific value they bring to the table, PE firms can establish trust and signal that they see the business as more than just another transaction. This will foster stronger connections with sellers, leading to more successful partnerships. 

We’ll be covering the topic of private equity and its role in the AE industry at the Texas and the South M&A and Business Symposium in Houston next month. If you’re attending the symposium and would like to connect, feel free to email me ahead of time at [email protected].